i.e., systematic or unsystematic. When dealing with systematic risk, calculating the right asset allocation can be your best bet for hedging against it. Asset allocation simply means deciding how ...

Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. Unsystematic ...

Excel can be very helpful in calculating the mean return, standard deviation, and VaR outcomes for various confidence intervals. Value at Risk (VaR) is a measurement showing a normal distribution ...

The Sortino Ratio helps investors measure the additional return they are likely to receive in exchange for taking on downside ...

Investors require higher premiums for longer-term bonds due to increased risk. Calculate maturity risk premium by subtracting expected inflation and default risk from total yield. Investor Alert ...

High-risk companies offer higher interest rates to compensate for possible default risks. Calculate default risk premium by subtracting combined premiums from a bond's total APY. Investor Alert ...

She is a library professional, transcriptionist, editor, and fact-checker. Calculating the equity risk premium for a security using Microsoft Excel is rather straightforward. Before entering ...

There are distinct categories and types of risk investors contend with, including systematic and unsystematic risk. Systematic risk is driven by external factors, while unsystematic risk is internal.

Generally speaking, the longer the time until maturity, the higher the maturity risk premium. Calculating maturity risk premium To figure out the maturity risk premium for your investment ...